An ETC issuer announces the listing of 15 Exchange Traded Commodities (ETCs) on the SIX Swiss Exchange (SIX). Source is delighted to be one of the first European ETP providers to list ETCs on SIX. Source has initially listed 14 T-ETCs (Treasury Bill secured ETCs) that track S&P GSCITM total return commodity indices and one physical gold P-ETC (physically secured ETC) that tracks the spot gold price and is secured by gold bullion held in J.P. Morgan Chase Bank’s London vaults……
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Ted Hood, CEO of Source, commented, “Listing our market leading ETCs on SIX is an important step in offering Swiss investors locally traded products and all of our investors the ability to trade these products on exchange in USD. We have raised US$850 MM in ETCs so our simple message – transparency, unparalleled asset quality, and efficient delivery of commodity exposure – is clearly resonating with the European institutional investment community. Source T-ETCs’ superior structure is a market leading solution in addressing counterparty risk.”
Alain Picard, Head of ETFs and other Financial Product Sales at SIX Swiss Exchange, added: “Swiss investors have shown significant interest in gaining commodity exposure. We are very happy to welcome Source as a provider in the new ETP segment of SIX Swiss Exchange”.
Source T-ETCs are collateralised with US Treasury Bills and cash held in segregated accounts by a trustee, and commodity index exposure is provided by multiple swap counterparts. All Source ETCs will trade in US dollars on SIX, and the annual fixed fee for all T-ETCs is 0.49% p.a., while the Source Physical Gold P-ETC (SGLD) is significantly less expensive than competing physical gold products at 0.29% p.a.
In addition to spot and front month future exposure and in response to investor demand for enhanced commodity index exposure, Source also offers the Crude Oil Enhanced T-ETC (SEWTI). Over the past few years, the performance of conventional front-month future tracking oil ETPs has varied dramatically from the spot price of oil due to the impact of contango in the oil futures markets. SEWTI is designed to track the S&P GSCI Crude Oil Enhanced Total Return index, an enhanced index that adjusts its exposure to the oil futures curve on a monthly basis, dynamically moving between the front month and 6 month NYMEX WTI futures contract depending upon the steepness of the curve. SEWTI has captured significant flows in 2010 as investors dig deeper into components of performance of existing front-month oil ETCs.
Working in partnership with BofA Merrill Lynch, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, Nomura, Nyenburgh as well as 17 other market makers, Source has raised over US$7.5 billion in total assets since launch in April 2009, with over US$800 million flowing into the Source ETC platform. Growth in Source ETC assets has been led by the Source Physical Gold P-ETC (SGLD), which has raised over US$600 million in assets as investors increased allocations to gold as a safe haven and inflation hedge. Gold investors have noted that SGLD is the most cost efficient physical gold ETP listed in Europe. Swiss investors have also shown strong interest in gaining exposure to commodities as an asset class, and have been keen to see products approved for local on-exchange trading.
Source: ETFWorld – Source
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